The Effectiveness of the Independent Directorship System in China’s Listed Companies : Evidence from Firms Listed on the Shanghai Stock Exchange.

Author

Khadijah Musa.

Soh, Samuel Hong En.

Wu, Tzu Ying.

Date of Issue

2005

School

College of Business (Nanyang Business School)

Abstract

This study aims to determine the effectiveness of the independent director system in China’s listed companies. A regression analysis was conducted to examine if a relationship existed between independence and firm performance. The study concludes that the relationship is still weak and provides recommendations to improve China’s corporate governance system.